CLA-2 CO:R:C:M 951165 MBR
Ms. Deborah Kok
International Sales Administrator
Andrew Corporation
19021 120th Avenue Northeast
Bothell, Washington U.S.A. 98011
RE: Andrew Bridgeport Multi-Station Access Units; MAUs; Local Area
Network; LAN; ADP Machine; Control And Adapter Unit; HQ
951331; HQ 952659
Dear Ms. Kok:
This is in reply to your letter of February 18, 1992, on
behalf of the Andrew Corporation, requesting the classification of
the Andrew Bridgeport Multi-Station Access Units (MAUs) Local Area
Networking (LAN) equipment, under the Harmonized Tariff Schedule
of the United States (HTSUS).
We have recently reconsidered the classification of LAN
equipment. See HQ 951331, dated September 18, 1992, as modified by
HQ 952659, dated October 7, 1992.
FACTS:
Andrew Multi-Station Access Units (MAUs) are wiring
concentrators for token ring local area networks. Workstations
plug into these MAUs. The MAUs are then connected to other MAUs
to form a star-wired ring local area network. MAUs create a
network on which mainframes, minicomputers and PCs can communicate
and share data.
ISSUE:
What is the classification of the Andrew Multi-Station Access
Unit for token ring LANs? Is it classifiable under heading 8471,
HTSUS, which provides for ADP machine "Control or adapter units,"
or under heading 8517, HTSUS, which provides for "[e]lectrical
apparatus for line telephony or telegraphy"?
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LAW AND ANALYSIS:
Since the HTSUS came into effect there has been a great deal
of controversy regarding the classification of LAN equipment.
However, there is no clear classification guidance from either the
HTSUS or the Harmonized Commodity Description and Coding System
Explanatory Notes (ENs), primarily due to the technological
advancements in this area.
However, Legal Note 5(B) to chapter 84, HTSUS, provides
guidance regarding units of automatic data processing machines.
It states:
Automatic data processing machines may be in the form of
systems consisting of a variable number of separately housed
units. A unit is to be regarded as being a part of the
complete system if it meets all of the following conditions:
(a) It is connectable to the central processing unit either
directly or through one or more other units; and
(b) It is specifically designed as part of such a system (it
must, in particular, unless it is a power supply unit,
be able to accept or deliver data in a form (code or
signals) which can be used by the system).
We agree that the token ring MAUs are essential to the ADP
systems with which they are integrated because they process and
format the data of the computers they serve.
The Harmonized Commodity Description and Coding System
Explanatory Notes (ENs), pages 1299-1300, describe separately
presented ADP units as follows:
This heading also covers separately presented constituent
units of data processing systems. Constituent units are those
defined in Parts (A) and (B) above as being parts of a
complete system.
Apart from central processing units and input and output
units, examples of such units include:
(4) Control and adaptor units such as those to effect
interconnection of the central processing unit to other
digital data processing machines, or to groups of input
or output units which may comprise visual display units,
remote terminals, etc.
After extensive research and analysis, it is now our opinion
that the principal function of the MAUs is, in fact, to effectuate
the interconnection of the CPU unit to other units or ADP machines,
thereby serving "control" and "adaption" functions, as described
by
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the ENs. Therefore, the "Andrew Bridgeport Multi-Station Access
Units" are properly classifiable in subheading 8471.99.15, HTSUS,
which provides for "Control or adapter units."
HOLDING:
The Andrew Bridgeport Multi-Station Access Units (MAUs) for
Token Ring Local Area Networking are classifiable in subheading
8471.99.15, HTSUS, which provides for: "[a]utomatic data processing
machines and units thereof: [o]ther: [o]ther: [c]ontrol or adapter
units." The rate of duty is Free.
Sincerely,
John Durant, Director
Commercial Rulings Division
ATTACHMENT: HQ 951331
HQ 952659